-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CFWGlzoIBNOlWvC2HeoCpe6d8GAUjEVcf96iKtiv5M44+ml6wjarkCFffW5p+2mE 2u3aEpySoI9b/O5zqzhrdw== /in/edgar/work/0000916480-00-000035/0000916480-00-000035.txt : 20001114 0000916480-00-000035.hdr.sgml : 20001114 ACCESSION NUMBER: 0000916480-00-000035 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSB HOLDINGS INC /WI/ CENTRAL INDEX KEY: 0000948368 STANDARD INDUSTRIAL CLASSIFICATION: [6036 ] IRS NUMBER: 391804877 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-26480 FILM NUMBER: 759406 BUSINESS ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 BUSINESS PHONE: 7158422191 MAIL ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 FORMER COMPANY: FORMER CONFORMED NAME: PSB HOLDINGS INC /WI/ DATE OF NAME CHANGE: 19950721 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES STATE BANK /WI/ DATE OF NAME CHANGE: 19950721 10-Q 1 0001.txt 10-Q - 09/30/2000 FOR PSB HOLDINGS, INC. FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: PSB HOLDINGS, INC. (Exact name of registrant as specified in charter) WISCONSIN 39-1804877 (State of incorporation) (I.R.S Employer Identification Number) 1905 WEST STEWART AVENUE WAUSAU, WISCONSIN 54401 (Address of principal executive office) Registrant's telephone number, including area code: 715-842-2191 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of common shares outstanding at September 30, 2000 was 841,905. PSB HOLDINGS, INC. FORM 10-Q QUARTER ENDED SEPTEMBER 30, 2000 PAGE NO. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets September 30, 2000 (unaudited) and December 31, 1999 (derived from audited financial statements) 1 Consolidated Statements of Income, Three Months Ended and Nine Months Ended September 30, 2000 and 1999 (unaudited) 2 Condensed Consolidated Statements of Cash Flows Nine Months Ended September 30, 2000 and 1999 (unaudited) 3 Notes to Condensed Consolidated Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Item 3. Quantitative and Qualitative Disclosures About Market Risk 14 PART II. OTHER INFORMATION Item 1. Legal Proceedings 14 Item 2. Changes in Securities 14 Item 3. Defaults Upon Senior Securities 14 Item 4. Submission of Matters to Vote of Securities Holders 14 Item 5. Other Information 14 Item 6. Exhibits and Reports on Form 8-K 14 PART I. FINANCIAL INFORMATION -i- ITEM 1. FINANCIAL STATEMENTS
PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS ($ thousands - September 30, 2000 unaudited, December 31, 1999 derived from audited financial statements) September 30, December 31, ASSETS 2000 1999 Cash and due from banks $ 11,778 $ 11,926 Interest bearing deposits and money market funds 605 62 Federal funds sold Securities: Held to maturity (fair values of $13,337 and $13,473, respectively) 13,485 13,843 Available for sale (at fair value) 48,352 46,489 Loans receivable, net of allowance for loan losses of $2,437 and $2,099 in 2000 and 1999, respectively 217,778 180,524 Accrued interest receivable 2,208 1,746 Premises and equipment 4,729 3,897 Other assets 1,471 1,402 TOTAL ASSETS $300,406 $259,889 LIABILITIES Noninterest-bearing deposits $32,622 $33,657 Interest-bearing deposits 199,429 168,697 Total deposits 232,051 202,354 Short-term borrowings 22,629 21,215 Long-term borrowings 22,000 13,000 Other liabilities 2,306 2,273 Total liabilities 278,986 238,842 STOCKHOLDERS' EQUITY Common stock - no-par value, with a stated value of $2 per share: Authorized - 1,000,000 shares Issued - 902,425 shares 1,805 1,805 Additional paid-in capital 7,159 7,159 Retained earnings 15,401 13,929 Accumulated other comprehensive loss, net of tax (720) (1,043) Treasury stock, at cost - 60,520 and 19,190 shares at September 30, 2000 and December 31, 1999, respectively (2,225) (803) Total stockholders' equity 21,420 21,047 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $300,406 $259,889
-1- PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended Three Months Ended September 30, September 30, ($ thousands except share data -unaudited) 2000 1999 2000 1999 Interest income: Interest and fees on loans $13,185 $10,261 $4,752 $3,602 Interest on investment securities: Taxable 2,159 2,113 726 701 Tax-exempt 447 493 147 162 Other interest and dividends 89 140 41 82 Total interest income 15,880 13,007 5,666 4,547 Interest expense: Deposits 7,177 5,659 2,770 1,910 Short-term borrowings 888 447 297 191 Long-term borrowings 913 245 347 107 Total interest expense 8,978 6,351 3,414 2,208 Net interest income 6,902 6,656 2,252 2,339 Provision for loan losses 450 255 150 105 Net interest income after provision for loan losses 6,452 6,401 2,102 2,234 Noninterest income: Service fees 609 474 261 169 Gain on sale of loans 35 206 17 37 Investment product sales commissions 149 103 48 34 Other operating income 241 225 29 45 Total noninterest income 1,034 1,008 355 285 Noninterest expenses: Salaries and employee benefits 2,984 2,375 1,056 765 Occupancy 698 635 235 205 Data processing and other office operations 332 324 104 104 Other operating 929 936 311 305 Total noninterest expenses 4,943 4,270 1,706 1,379 Income before income taxes 2,543 3,139 751 1,140 Provision for income taxes 745 1,023 206 381 Net income $1,798 $2,116 $545 $759 Basic and diluted earnings per share $2.08 $2.40 $0.64 $0.86 Weighted average shares outstanding 864,255 883,235 847,895 883,235
-2- PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
Nine Months Ended September 30, ($ thousands - unaudited) 2000 1999 Cash flows from operating activities: Net income $1,798 $2,116 Adjustments to reconcile net income to net cash provided by operating activities: Provision for depreciation and net amortization 419 338 Provisions for loan losses 450 255 Gain on sale of loans (35) (206) Changes in operating assets and liabilities: Other assets (726) (417) Other liabilities 33 (1,247) Net cash provided by operating activities 1,939 839 Cash flows from investing activities: Proceeds from sale and maturities of: Held to maturity securities 929 2,171 Available for sale securities 4,889 9,265 Payment for purchase of: Held to maturity securities (585) (2,664) Available for sale securities (6,247) (7,880) Net increase in loans (37,669) (19,101) Net (increase) decrease in interest-bearing deposits (543) 690 Net decrease in federal funds sold 3,934 Capital expenditures (1,224) (302) Net cash used in investing activities (40,450) (13,887) Cash flows from financing activities: Net increase in deposits 29,697 5,945 Net increase in short-term borrowings 1,414 6,042 Net increase in long-term borrowings 9,000 3,000 Dividends paid (326) (335) Purchase of treasury stock (1,422) Net cash provided by financing activities 38,363 14,652 Net increase (decrease) in cash and due from banks (148) 1,604 Cash and due from banks at beginning 11,926 8,752 Cash and due from banks at end $11,778 $10,356 Supplemental Cash Flow Information: Cash paid during the period for: Interest $8,612 $6,351 Income taxes 733 1,067
-3- PSB HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - GENERAL In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly PSB Holdings, Inc.'s ("Company") financial position, results of its operations and cash flows for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All material intercompany transactions and balances are eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles have been omitted or abbreviated. The information contained in the consolidated financial statements and footnotes in the Company's 1999 annual report on Form 10-K, should be referred to in connection with the reading of these unaudited interim financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are susceptible to significant change include the determination of the allowance for credit losses and the valuations of investments. NOTE 2 - CHANGE IN ACCOUNTING PRINCIPLE Effective January 1, 2001, the Company will adopt Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities." Under this SFAS, the Company must recognize all material derivatives as either assets or liabilities in the balance sheet and measure those instruments at fair value. Changes in fair value are generally recognized in earnings during the period the changes occur. The adoption of SFAS No. 133 is not expected to have an impact on the Company's financial condition or results of operations. NOTE 3 - EARNINGS PER SHARE Earnings per share of common stock is based on the weighted average number of common shares outstanding during the period. The Company does not maintain a stock option plan. -4- NOTE 4 - COMPREHENSIVE INCOME Generally accepted accounting principles require comprehensive income and its components, as recognized under the accounting standards, to be displayed in a financial statement with the same prominence as other financial statements. The disclosure requirements with respect to the Form 10-Q have been included in the Company's consolidated balance sheets. Comprehensive income totaled the following for the periods indicated:
Nine Months Ended Three Months Ended ($ thousands - unaudited) 9/30/00 9/30/99 9/30/00 9/30/99 Net Income $1,798 $2,116 $545 $759 Change in net unrealized gain or loss on securities available for sale, net of tax 323 (789) 285 (184) Comprehensive income $2,121 $1,327 $830 $575
-5- NOTE 5 - INVESTMENT SECURITIES
The amortized cost and estimated fair value of investment securities are as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair ($ thousands) COST GAINS LOSSES VALUE SEPTEMBER 30, 2000 Securities held to maturity: Obligations of states and political subdivisions $13,485 $37 $185 $13,337 Securities available for sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $47,319 $31 $1,017 $46,333 Other equity securities 2,019 2,019 Totals $49,338 $31 $1,017 $48,352 DECEMBER 31, 1999 Securities held to maturity: Obligations of states and political subdivisions $13,843 $18 $388 $13,473 Securities available for sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $47,246 $13 $1,517 $45,742 Other equity securities 747 747 Totals $47,993 $13 $1,517 $46,489
-6- ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is presented to assist in the understanding and evaluation of the Company's financial condition and results of operations. It is intended to complement the unaudited financial statements, footnotes, and supplemental financial data appearing elsewhere in this Form 10-Q and should be read in conjunction therewith. All dollar amounts are in thousands, except per share amounts. Forward-looking statements have been made in this document that are subject to risks and uncertainties. While the Company believes these forward-looking statements are based on reasonable assumptions, all such statements involve risk and uncertainties that could cause actual results to differ materially from those contemplated in this report. The assumptions, risks, and uncertainties related to the forward-looking statements in this report include those described under the caption "Cautionary Statements Regarding Forward-Looking Information" in Part I of the Company's Form 10-K for the year ended December 31, 1999 and, from time to time, in the Company's other filings with the Securities and Exchange Commission. BALANCE SHEET At September 30, 2000, total assets were $300,406, an increase of $52,183, or 21.0%, over September 30, 1999, while assets grew $40,517 over December 31, 1999. Gross loans (excluding loans held for sale) were $220,215 at September 30, 2000, growing $47,879 over third quarter 1999 and $37,592 over fourth quarter 1999. Loan growth has come primarily from commercial real estate loans. Table 1: Period-End Loan Composition
9/30/00 % OF TOTAL 12/31/99 % OF TOTAL Commercial and financial $ 53,377 24.24 $ 51,053 27.96 Real estate 150,731 68.45 118,195 64.72 Consumer installment 16,107 7.31 13,375 7.32 Total loans $220,215 100.00 $182,623 100.00
The loan portfolio is the Company's primary asset subject to credit risk. The Company's process for monitoring credit risks includes weekly analysis of loan quality, delinquencies, nonperforming assets, and potential problem loans. Loans are placed on a nonaccrual status when they become contractually past due 90 days or more as to interest or principal payments. All interest accrued but not collected for loans (including applicable impaired loans) that are placed on nonaccrual or charged off is reversed to interest income. The interest on these loans is accounted for on the cash basis until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due have been collected and there is reasonable assurance that repayment will continue within a reasonable time frame. -7- BALANCE SHEET (Continued) A loan is considered impaired when, based on current information, it is probable that the bank will not collect all amounts due in accordance with the contractual terms of the loan agreement. Impairment is based on discounted cash flows of expected future payments using the loan's initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. The aggregate amount of nonperforming loans decreased $259 to $759 at September 30, 2000 from $1,018 at September 30, 1999. Nonperforming loans are those which are either contractually past due 90 days or more as to interest or principal payments, on a nonaccrual status, or the terms of which have been renegotiated to provide a reduction or deferral of interest or principal. Table 2: Allowance for Loan Losses and Nonperforming Assets
Nine Months Ended 9/30/00 9/30/99 Allowance for loan losses at beginning of period $2,099 $1,947 Provision charged to operating expense 450 255 Recoveries on loans 23 89 Loans charged off (135) (114) Allowance for losses at end of period $2,437 $2,177
Table 3: Nonperforming Assets
Nine Months Ended 9/30/00 9/30/99 Nonaccrual loans $759 $1,018 Accruing loans past due 90 days or more 0 0 Restructured loans 0 0 Total nonperforming loans 759 1,018 Other real estate owned 34 0 Total nonperforming assets $793 $1,018
Management is not aware of any additional loans that represent material credits or of any information that causes management to have serious doubts as to the ability of such borrowers to comply with the loan repayment terms. -8- LIQUIDITY Liquidity refers to the ability of the Company to generate adequate amounts of cash to meet the Company's need for cash. The Company manages its liquidity to provide adequate funds to support borrowing needs and deposit flow of its customers. Management views liquidity as the ability to raise cash at a reasonable cost or with a minimum of loss and as a measure of balance sheet flexibility to react to marketplace, regulatory, and competitive changes. Deposit growth is the primary source of liquidity. Deposits as a percentage of total funding sources were 83.9% at September 30, 2000 and 91.3% at September 30, 1999. Wholesale funding represents the balance of the Company's total funding needs. As of September 30, 2000, earning assets maturing within one year totaled $96,549, while interest-bearing deposits maturing within one year totaled $95,216. Unused credit advances available to the Company at September 30, 2000 totaled approximately $5,000. The Company attempts, when possible, to match relative maturities of assets and liabilities, while maintaining the desired net interest margin. In response to slow deposit growth, in comparison to loan demand, the Company has acquired more noncore funds. The primary funding sources utilized are Federal Home Loan Bank advances, federal funds purchased, repurchase agreements from a base of individuals, businesses, and public entities, and brokered CDs. CAPITAL RESOURCES Stockholders' equity at September 30, 2000 decreased $128 compared to $21,548 at September 30, 1999. Stockholders' equity included unrealized losses on securities available for sale, net of their tax effect, of $720 at September 30, 2000 compared to $617 for the comparable prior year period. The adequacy of the Company's capital is regularly reviewed to ensure sufficient capital is available for current and future needs and is in compliance with regulatory guidelines. As of September 30, 2000, the Company's tier 1 risk-based capital ratio, total risk-based capital, and tier 1 leverage ratio were well in excess of regulatory minimums. Table 4: Capital Ratios (Consolidated)
Tier 1 Total Tier 1 CAPITAL CAPITAL LEVERAGE September 30, 2000 10.42% 11.56% 7.37% September 30, 1999 12.81% 14.06% 9.30% Regulatory minimum requirements for capital adequacy 4.00% 8.00% 4.00%
-9- RESULTS OF OPERATIONS Net income for the quarter ended September 30, 2000, totaled $545, or $.64 per share for basic and diluted earnings per share. Comparatively, net income for the quarter ended September 30, 1999 was $759, or $.86 per share for basic and diluted earnings per share. Operating results for the third quarter 2000 generated an annualized return on average assets of .74% and an annualized return on average equity of 10.26%, compared to 1.23% and 14.38% for the comparable period in 1999. The net interest margin for third quarter 2000 was 3.40% compared to 4.01% for the comparable quarter in 1999. -10- Table 5: Summary Results of Operations
The following table presents consolidated financial data of PSB Holdings, Inc. and Subsidiary. 2000 Third Second First ($ thousands except per share amounts) QUARTER QUARTER QUARTER FINANCIAL HIGHLIGHTS: Earnings and Dividends: Net interest income $2,252 $2,314 $2,331 Provision for credit losses 150 150 150 Other noninterest income 355 356 327 Other noninterest expense 1,706 1,537 1,698 Net income 545 680 573 Per common share: Basic and diluted earnings 0.64 0.78 0.65 Dividends declared 0.00 0.38 0.00 Book value 25.44 24.61 24.42 Average common shares 847,895 866,433 878,616 Dividend payout ratio 0.00% 48.72% 0.00% Balance Sheet Summary: Loans net of unearned income 217,778 206,943 195,224 Assets 300,406 285,080 270,315 Deposits 232,051 221,981 208,027 Shareholders' equity 21,420 21,067 21,320 Average balances: Loans net of unearned income 214,773 201,128 188,247 Assets 292,743 277,698 263,364 Deposits 227,016 215,004 204,245 Shareholders' equity 21,244 21,194 21,138 Performance Ratios: Return on average assets (1) 0.74% 0.98% 0.87% Return on average common equity (1) 10.26% 12.81% 10.88% Tangible equity to assets 7.37% 7.74% 8.25% Net loan charge-offs as a percentage of average loans 0.01% 0.05% 0.01% Nonperforming assets as a percentage of average loans 0.35% 0.32% 0.54% Net interest margin (1) (2) 3.40% 3.65% 3.89% Efficiency ratio (2) 63.59% 55.99% 62.04% Service fee revenue as a percentage of average assets (1) 0.36% 0.27% 0.24% (1) Annualized (2) Tax-exempt income has been adjusted to its fully taxable equivalent with a 34% tax rate
-11- NET INTEREST INCOME Net interest income is the most significant component of earnings. Net interest income for the three months ended September 30, 2000 was $2,252. Comparatively, net interest income for the third quarter 1999 was $2,339. Fully taxable equivalent net interest income for the third quarter 2000 decreased $94 to $2,328 from third quarter 1999. Average earning assets grew $45,015 from the third quarter 1999. The net interest margin for the three months ended September 30, 2000 was 3.40% or 61 basis points less than the 4.01% margin in the third quarter 1999. The net interest margin continues to decline due to the higher costs of deposits needed to fund the balance sheet. Yields on earning assets increased to 8.38% compared to 7.82% in 1999. However, the costs for interest-bearing liabilities increased to 5.75% from 4.60%. The Company is trying to position more assets to reprice with the market to maintain or increase the net interest margin. PROVISION FOR LOAN LOSSES Management determines the adequacy of the provision for loan losses based on past loan experience, current economic conditions, composition of the loan portfolio, and the potential for future loss. Accordingly, the amount charged to expense is based on management's evaluation of the loan portfolio. It is the Company's policy that when available information confirms that specific loans and leases, or portions thereof, including impaired loans, are uncollectible, these amounts are promptly charged off against the allowance. The provision for loan losses was $150 for the three months ended September 30, 2000 and $105 for the three months ended September 30, 1999. Net charge-offs as a percentage of average loans outstanding were .01% and .01% during the three months ended September 30, 2000 and 1999, respectively. Nonperforming loans are reviewed to determine exposure for potential loss within each loan category. The adequacy of the allowance for loan losses is assessed based on credit quality and other pertinent loan portfolio information. The adequacy of the reserve and the provision for loan losses is consistent with the composition of the loan portfolio and recent credit quality history. NONINTEREST INCOME Noninterest income increased 24.6% to $355 during the three months ended September 30, 2000, from the comparable third quarter of 1999. There were no gains or losses on securities during the three months ended September 30, 2000 and 1999. Service fees on deposit accounts increased $92 for the three months ended September 30, 2000 from the three months ended September 30, 1999. NONINTEREST EXPENSE Noninterest expense increased 23.7% to $1,706 for the three months ended September 30, 2000, from $1,379 for the three months ended September 30, 1999. Salaries and employee benefits expense increased in 2000 compared to 1999 due, in part, to a change in officer base salary arrangements during 2000. In previous years, officer discretionary year-end bonuses were awarded (and expensed) in the fourth quarter based on approval by the Company's board of directors. During 2000, these discretionary year-end bonus payments were made part of the officers' base salary as part of -12- an overall salary restructuring program and recorded throughout the year as salary expense. The increase in base officer salary and benefits expense was $169,000 (before income tax benefits) during the nine months ended September 30, 2000. Also during 2000, the Company began a new formalized employee incentive compensation plan that awards year-end compensation upon achievement of profitability and personal goals set during the beginning of the year. Employee salaries and benefits expense due to accrual of possible incentive compensation payments was $131,000 (before income tax benefits) during the nine months ended September 30, 2000. If profitability and personal goals are not met at year-end, previously accrued and expensed incentive compensation amounts will be reversed and reduce salaries expense during the fourth quarter of 2000. Table 6: Key Operating Ratios
Three Months and Nine Months Ended September 30, 2000 and 1999 (unaudited) Nine-Month Period Three-Month Period 2000 1999 2000 1999 Return on assets (net income divided by average assets) (1) 0.86% 1.19% 0.74% 1.23% Return on average equity (net income divided by average equity) (1) 11.29% 13.51% 10.26% 14.38% Average equity to average assets 7.58% 8.81% 7.26% 8.55% Interest rate spread (difference between average yield on interest-earning assets and average cost of interest-bearing liabilities) (1) (2) 2.88% 3.18% 2.63% 3.22% Net interest margin (net interest income as a percentage of average interest- earning assets) (1) (2) 3.65% 3.98% 3.40% 4.01% Noninterest expense to average assets (1) 2.35% 2.49% 2.33% 2.40% Allowance for loan losses to total loans at end of period 1.11% 1.26% 1.11% 1.26% (1) Annualized (2) Tax-exempt income has been adjusted to its fully taxable equivalent with a 34% tax rate
-13- ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There has been no material change in the information provided in response to Item 7A of the Company's Form 10-K for the year ended December 31, 1999. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS Not Applicable ITEM 5. OTHER INFORMATION Not Applicable ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: The following exhibits required by Item 601 of Regulation S-K are filed with the Securities and Exchange Commission as part of this report. Exhibit NUMBER DESCRIPTION 3.1 Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4(a) to the Company's Current Report on Form 8-K dated May 30, 1995) 1.2 Bylaws (incorporated by reference to Exhibit 4(b) to the Company's Current Report on Form 8-K dated May 30, 1995) 4.1 Articles of Incorporation and Bylaws (see Exhibits 3.1 and 3.2) 10.1 Bonus Plan of Directors of the Bank (incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* -14- 10.2 Bonus Plan of Officers and Employees of the Bank* (incorporated by reference to Exhibit 10(b) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* 10.3 Nonqualified Retirement Plan for Directors of the Bank (incorporated by reference to Exhibit 10(c) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* 10.4 Senior Management Incentive Compensation Plan (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2000)* 21.1 Subsidiaries of the Company (incorporated by reference to Exhibit 22 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995) 27.1 Financial Data Schedule (electronic filing only) *Denotes Executive Compensation Plans and Arrangements (b) Reports on Form 8-K: None. -15- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PSB HOLDINGS, INC. November 13, 2000 TODD R. TOPPEN Todd R. Toppen Secretary and Controller (On behalf of the Registrant and as Principal Financial Officer) -16- EXHIBIT INDEX TO FORM 10-Q OF PSB HOLDINGS, INC. FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000 Pursuant to Section 102(d) of Regulation S-T (17 C.F.R. '232.102(d)) 27.1 FINANCIAL DATA SCHEDULE (ELECTRONIC FILING ONLY) EX-27 2 0002.txt ART. 9 FDS FOR 9-MONTHS 10-Q ENDED SEPTEMBER 30, 2000
9 1,000 9-MOS DEC-31-2000 SEP-30-2000 11,778 605 0 0 48,352 13,485 13,337 220,215 2,437 300,406 232,051 22,629 2,306 22,000 0 0 1,805 19,615 300,406 13,185 2,606 89 15,880 7,177 8,978 6,902 450 0 4,943 2,543 2,543 0 0 1,798 2.08 2.08 3.65 759 0 0 2,375 2,099 135 23 2,437 2,437 0 0
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